ISTANBUL (Reuters) - A settlement to end a three-decade insurgency by Kurdish militants in Turkey could be reached within months if the government puts in place legal guarantees for Kurdish rights, a jailed militant leader was quoted as saying on Sunday.

The siege by Islamic State militants of the Syrian Kurdish town of Kobani on the Turkish border has risked derailing Turkey's fragile peace process with its own Kurds, who have accused Ankara of failing to protect their ethnic kin.